Steinmetz mining venture set for LSE

BEnny Steinmetz, the billionaire Israeli diamond merchant estimated by Forbes to be one of the world's richest men, is preparing to float his latest venture on the London Stock Exchange.

Steinmetz, who made his fortune in diamonds and is a Formula One sponsor, is backing a mining conglomerate with nickel and copper assets in Macedonia and Zambia, as well as other potential opportunities in the Balkans.

The company, called Cunico, has appointed investment banks Deutsche Bank and Credit Suisse to advise on the flotation which is expected to value the company at around £1bn. Industry sources said a decision on the timing of any offer is expected in the next few weeks.

It is understood that Cunico will fall under Steinmetz's resources group, which also owns stakes in other mining companies. He controls Bateman Engineering, the South African mining company which is listed on London's junior Aim market.

Steinmetz's umbrella company, the Benny Steinmetz Group, is based in Israel and known best as a diamond trader; it is one of the biggest customers of De Beers, the world's largest diamond group. His cutting centre in South Africa is known for polishing the world's rarest stones and he has brought some of the most talked about diamonds into the spotlight, including the De Beers Millennium Star.

Steinmetz, who is known as a sharp entrepreneur with an infallible trading instinct, likes to keep a low profile. Colleagues have in the past described him as being based on a Boeing 747.

However, he caught the attention of the press four years ago with one of the world's most valuable diamonds, the Steinmetz Pink. It is an internally flawless 59.6 carat vivid pink and is said to be one of the most precious stones ever mined. Reports at the time said the diamond was up for sale for $100m (£50m).